The Supreme Court of France overturned the decision of the Court of Appeal of Paris and upheld the decision of the international arbitration to collect $1.1 billion from Russia in favor of Oschadbank. Also, the Russians still have to pay interest for seizing the bankʼs assets in the annexed Crimea.
Deputy Minister of Justice Iryna Mudra reported about this on her Facebook page.
The Supreme Court of France sided with Oschadbank regarding the losses caused by the Russian Federation during the occupation of Crimea.
“Thirty thousand pages that prove the illegality of the expropriation of Oschadbankʼs investments located in Crimea. 76 kilograms in six boxes. And each page proves specific facts of violation of international law and confirms that Oschadbank has the right to fair compensation,” she said.
Also, Russia must pay interest, which will be accrued from the moment of the decision to the moment of actual compensation. They will amount to about $100,000 daily.
- On November 26, 2018, the Arbitration Tribunal in Paris decided to satisfy Oschadbankʼs demand for compensation for damages caused by Russia. The amount of compensation was supposed to be $1.1 billion plus interest (a total of $1.3 billion).
- Russia appealed this decision in the national court at the place of arbitration — in Paris. The court upheld one of the claims of the Russians and, based on this, annulled the decision of the Arbitration Tribunal. The court made such a decision due to the fact that the investment protection agreement, within which the Ukrainian side sued, applies to investments from January 1, 1992. And Oschadbank started functioning in Crimea earlier — immediately after the collapse of the USSR.
- Oschadbank considered the decision erroneous and contrary to the precedent practice both in France and in other European countries. Therefore, the bank filed an appeal.